Google's diversification could lead the firm towards a related linked strategy and give the firm advantages in multipoint competition with competitors such as Facebook and Microsoft (Chapter 6 Strategic Focus).

Question

Quizplus · Accepted Answer

Google's diversification into various industries such as advertising, cloud services, and hardware could lead the firm towards a related linked strategy, where the different industries share resources, capabilities, and technologies to achieve economies of scope and scale. This strategy can give Google advantages in multipoint competition with competitors such as Facebook and Microsoft, who also operate in multiple industries. By leveraging resources across industries, Google can achieve cost savings, better coordination, and faster innovation, which can help the firm to differentiate itself and gain a competitive edge.

Google's Diversification Could Lead the Firm Towards a Related Linked